Minister optimistic of 2019 tax revenue target realization

Minister optimistic of 2019 tax revenue target realization

Finance Minister Sri Mulyani Indrawati (right) installed the ministry's echelon-III officials in Jakarta on Tuesday (Sept 17, 2019). ANTARA/Dewa Wiguna/sh

Jakarta (ANTARA) - Strong external pressure from the global economic slowdown failed to dampen Finance Minister Sri Mulyani Indrawati’s optimism of realization of the tax revenue target set for 2019.

"The target of tax revenue realization for 2019 is quite tough, but it does not mean that we cannot reach it," Indrawati remarked while installing the ministry's echelon-III officials here on Tuesday.

The minister noted that the government had set a credible tax revenue target that is in line with the current economic condition.

The former managing director of the World Bank admitted that Indonesia had faced significant external pressure from the global economic slowdown.

The likelihood of economic recession in some nations too added to the pressure that had impacted the country's export, she pointed out.

The government, in its state budget 2019, has targeted tax revenue of Rp1,577 trillion (US$109.5 billion). During the first semester of the year, the country clocked tax revenue of Rp603.34 trillion ($41.86 billion), or some 38.25 percent of the target.

It recorded a 3.75 percent growth than the tax revenue recorded during the corresponding period of 2018.

Income tax remains the main source of tax revenue in the first semester of 2019, with Rp376.32 trillion of revenue ($26.11 billion), followed by the non-oil and gas sector, with Rp346.16 trillion of revenue ($24 billion); value added tax and luxury goods tax, Rp212.32 trillion ($14.73 billion); oil and gas sector, Rp30.16 trillion ($2.09 billion); and land-building tax and other taxes, Rp14.70 trillion ($1.02 billion). Related news: Tax revenues up 16.52 percent to Rp799.46 trillion: Finance Ministry